Form 4: Altice USA Director and 10% Owner, Next Alt S.a.r.l., Disposes of Shares Through Capped Call Transactions

Next Alt S.a.r.l., a significant shareholder and director of Altice USA, Inc., sold 805,227 shares of Class A common stock through the exercise of capped call transactions.

Summary

• Next Alt S.a.r.l., an indirect wholly-owned holding company of Patrick Drahi, a director of Altice USA, disposed of 805,227 shares of Altice USA Class A common stock on December 4, 2024.
• The shares were sold through the exercise of existing capped call transactions with a financial institution.
• The sales occurred at three different prices: $23.3164, $24.5, and $25.6836 per share.
• These transactions reduced Next Alt's direct holdings of Class A common stock to 17,119,869 shares.
• The capped call transactions involved a total of 33,819,573 shares and expire in tranches over a 42-day period, starting October 25, 2024.
• Next Alt repaid debt to the financial institution by delivering the shares as part of the capped call exercise.

Sentiment

Score: 5

Explanation: The document is neutral in sentiment. It reports a routine transaction, but the sale of shares by a major shareholder could be viewed with slight concern by the market.

Negatives

• The sale of a significant number of shares by a major shareholder could be perceived negatively by the market.

Risks

• The ongoing exercise of capped calls could lead to further sales of shares by Next Alt.
• The market may react negatively to the continued reduction in Next Alt's holdings.

Future Outlook

The capped calls expire in tranches over a 42-day period, suggesting further share sales may occur.

Management Comments

• Each Reporting Person disclaims beneficial ownership of all interests reported on this Form 4 except to the extent of such Reporting Person's pecuniary interests.

Industry Context

This filing is a routine disclosure of share transactions by a major shareholder and director, which is common in publicly traded companies. The use of capped calls is a sophisticated financial strategy often employed by large shareholders.

Comparison to Industry Standards

• Form 4 filings are standard practice for reporting changes in beneficial ownership by insiders in publicly traded companies.
• The use of capped call transactions is not uncommon among large shareholders seeking to manage their risk and exposure.
• The size of the transaction is significant given the number of shares involved, but not unusual for a 10% owner.

Stakeholder Impact

• Shareholders may be concerned about the reduction in holdings by a major shareholder.
• The market may react to the ongoing share sales.

Next Steps

• The remaining capped call tranches will continue to expire over the next 42 trading days.
• Further Form 4 filings may be expected as the capped calls are exercised.

Key Dates

Keywords

Altice USA, Next Alt S.a.r.l., Patrick Drahi, capped call, share sale, Form 4, director, 10% owner